Abstract
Derivatives have become a central element of the world’s financial system. The size of the market, the speed at which it has grown, and the range of participants it has attracted indicate that it is part of the mainstream of global financial and capital flows. Though the marketplace has become well established and proven itself to be extremely useful in shifting risks and providing investment and funding opportunities, it has also suffered from a series of setbacks and problems, including client and dealer losses. As we expand our discussion on derivative risk management, it is helpful to consider how and why derivative losses occur.
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© 2004 Erik Banks
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Banks, E. (2004). Derivative Losses. In: The Credit Risk of Complex Derivatives. Finance and Capital Markets Series. Palgrave Macmillan, London. https://doi.org/10.1057/9781403946096_2
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DOI: https://doi.org/10.1057/9781403946096_2
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-51299-7
Online ISBN: 978-1-4039-4609-6
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)